Fraud Check Fraud and Warranty of Merchantability Chapter

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Business Law

Tandy purchased a washing machine from Marshall Appliances. Marshall affixed to the sales contract a provision explicitly disclaiming all express or implied warranties. This includes the implied warranty of merchantability. The washing machine turned out to be a lemon, and Tandy sought a refund of the purchase price.

Such a disclaimer serves to release the seller from liability for product defects. In this case, the nature of the defect and the time frame for Tandy's claim are not known. However, the warranty disclaimer is not bulletproof. One of the issues that will be looked at is whether or not this disclaimer is in writing. It is, but in the same print as the rest of the sales contract. This may be an issue, if the matter goes to court, because the court might find that the seller tried to hide the warranty disclaimer rather than being up-front about it. However, because the warranty was contained in the sales contract, and Tandy signed the sales contract, there is a good chance that the court will find that Tandy agreed to this warranty disclaimer.

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The warranty of merchantability is a specific warranty that the good in question is fit for sale. This is an implied warranty, and usually this is enforced. This is where the court might wish to know the nature of the defect and the time frame in which Tandy's warranty claim occurred. In general, this warranty must be disclaimed specifically and in writing. A general warranty disclaimer will not suffice, as contract law argues that the goods must be as represented, which means they must be merchantable.

Chapter on Fraud Check Fraud and Warranty of Merchantability Assignment

The case write-up is ambiguous. It does not make clear what the actual text of the disclaimer is -- this matters. It matters because unless the warranty of merchantability is cited by name, or it is otherwise made clear that a sale of a good is on an "as is" basis, then the warrant of merchantability still applies, disclaimer or not. In this case, we do not really know enough of the facts, but it sounds like the warranty of merchantability was not disclaimed in this way, and therefore Tandy is correct, that she should receive either an exchange… [END OF PREVIEW] . . . READ MORE

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Fraud Check Fraud and Warranty of Merchantability.  (2015, December 2).  Retrieved June 6, 2020, from

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"Fraud Check Fraud and Warranty of Merchantability."  December 2, 2015.  Accessed June 6, 2020.